RE/MAX Holdings, Inc. announced that RE/MAX, LLC, one of the world’s leading franchisors of real estate brokerage services, has completed its previously announced purchase of the North American regions of RE/MAX INTEGRA. With the sale now closed, more than 19,000 agents (approximately 12,000 in Canada and 7,000 in the U.S.) and more than 1,100 independently owned and operated RE/MAX offices are now in the growing group of RE/MAX, LLC Company-Owned Regions (COR).
“We are delighted to complete this landmark regional acquisition,” said Adam Contos, RE/MAX Holdings CEO. “The addition of these strategic and geographically desirable regions enhances our ability to continue to scale, brings many attractive growth opportunities and simplifies our operational structure by creating greater efficiencies. RE/MAX INTEGRA co-founders Frank Polzler and Walter Schneider have built an impressive network over the 40 years they’ve dedicated to growing this brand. Our goal is to continue their impactful legacy and support the continued growth of these regions under the RE/MAX, LLC umbrella.”
The RE/MAX INTEGRA regions acquired by RE/MAX, LLC include five Canadian provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island) and nine U.S. states (the New England states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, plus the Midwestern states of Indiana, Minnesota, and Wisconsin). RE/MAX INTEGRA owns the master franchise for RE/MAX Europe and will continue to manage operations there, as it has since 1994.
Acquiring independent RE/MAX regional franchises has long been a key pillar of the Company’s growth strategy and a capital allocation priority. RE/MAX, LLC has now purchased formerly Independent Regions covering 21 states, two partial states (Northern Illinois, Southern Ohio), the District of Columbia and five Canadian provinces beginning with the Initial Public Offering (IPO) in October 2013. The acquisition of INTEGRA’s North American regions is the largest manifestation of this strategy to date.
“Affiliates in the former RE/MAX INTEGRA regions have benefited from years of strong leadership and innovative technologies and they can expect that high standard of support and service to continue,” added RE/MAX, LLC President, Nick Bailey. “This acquisition allows us to drive scale, align and streamline operations across many functions by delivering the best tools, training and technology at a greater clip. This is an exciting time for all RE/MAX Affiliates.”
Brokerages in Indiana, Minnesota and Wisconsin are joining the Central Region under RE/MAX Vice President Dana Tuggle and the New England offices will join RE/MAX Vice President Kevin Northrup under the Northeast Region. Christopher Alexander, Senior Vice President, RE/MAX Canada and Elton Ash, Regional Executive Vice President, RE/MAX Canada, will collaborate to lead COR operations as a unified front in Canada.
RE/MAX has a worldwide network of nearly 140,000 agents in more than 110 countries and territories, a global footprint larger than any of its competitors. RE/MAX, LLC is a wholly owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc.
Debt Financing
RE/MAX Holdings also announced today that RE/MAX, LLC has amended and restated its Credit Agreement to raise $460 million in term loans and increase the capacity of the revolving facility to $50 million. RE/MAX, LLC will use the proceeds from the amended Credit Agreement to repay existing indebtedness of approximately $225 million and to fund the $235 million acquisition of the RE/MAX INTEGRA North American regions.
“We are pleased to take advantage of favorable market conditions and have accomplished our goal of extending our financing capacity to bring these regions into the Company-owned fold. We are excited about the inherent growth potential within our business for years to come,” said Karri Callahan, Chief Financial Officer of RE/MAX Holdings.
Financial Guidance
RE/MAX Holdings will provide further details on the transaction, including updated financial guidance, during the Company’s second quarter earnings conference call to be held on Thursday, August 5, 2021, at 8:30 a.m. Eastern Time. Interested parties can access the conference call using the link below:
Interested parties will also able to access a live webcast through the Company’s Investor Relations website at http://investors.remaxholdings.com/.
About RE/MAX Holdings, Inc.
RE/MAX Holdings, Inc. is one of the world’s leading franchisors in the real estate industry, franchising real estate brokerages globally under the RE/MAX® brand, and mortgage brokerages within the U.S. under the Motto® Mortgage brand. RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. Now with nearly 140,000 agents across over 110 countries and territories, nobody in the world sells more real estate than RE/MAX, as measured by total residential transaction sides. Dedicated to innovation and change in the real estate industry, RE/MAX Holdings launched Motto Franchising, LLC, a ground-breaking mortgage brokerage franchisor, in 2016. Motto Mortgage has grown to over 150 offices in almost 40 states.